CALGARY, AB – Parkland Corporation has released its financial and operating results for the second quarter of 2024, showcasing a strong performance despite facing industry challenges.
“I would like to express my gratitude to the Parkland team for achieving record results this quarter,” stated the company’s President and CEO. “Our commitment to enhancing returns through strategic investments and leveraging our supply advantages remains strong as we work towards sustainable growth and shareholder value.”
Q2 2024 Financial Highlights
- Adjusted EBITDA reached $504 million, reflecting a 7 percent increase compared to Q2 2023.
- Net earnings totaled $70 million ($0.40 per share), a 10 percent decrease from the previous year; however, adjusted earnings increased by 20 percent to $156 million ($0.89 per share).
- Trailing twelve-month available cash flow was $831 million ($4.75 per share), up 60 percent year-over-year.
- The company repurchased approximately 700,000 common shares for $29 million, maintaining a leverage ratio of 3.1 times.
- Return on invested capital rose to 9 percent, up from 7.7 percent year-over-year.
Q2 2024 Segment Performance
- Canada’s adjusted EBITDA stood at $172 million, a 15 percent increase from Q2 2023, driven by improved fuel unit margins despite softer retail demand.
- International operations delivered $182 million in adjusted EBITDA, an 8 percent increase, supported by stronger wholesale fuel margins.
- U.S. operations reported adjusted EBITDA of $49 million, down 34 percent, reflecting reduced demand for diesel and gasoline.
- Refining segment adjusted EBITDA increased to $121 million, with a notable 98 percent utilization at the Burnaby Refinery.
- Overall operating costs showed a decrease of $5 million, demonstrating effective cost-reduction measures.
- The total recordable injury frequency rate was 1.21, up from 0.87 at the same time last year, highlighting ongoing safety challenges.
Guidance Update
Parkland has adjusted its 2024 guidance for adjusted EBITDA to a range of $1.9 billion to $2.0 billion due to an unplanned shutdown at the Burnaby Refinery and challenging market conditions experienced earlier this year.
Leadership Changes
Effective July 31, 2024, Michael Jennings has been appointed Chair of the Board, succeeding retiring Chair Steven Richardson. Jennings brings over 30 years of experience in the energy sector.
Sustainability Initiatives
Parkland also released its fifth Sustainability Report, detailing its continuing commitment to environmental, social, and governance (ESG) principles. Key initiatives include co-processing low-carbon fuels and enhancing inclusivity in the workplace.
For more information and a detailed overview of the financial results, please refer to the company’s financial statements and management analysis, available on their official website.
